MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Tuesday, September 28, 2004 Timing Plagues Canada Funds: IFIC/MFDA Chief Resigns The fund scandals are hitting firms north of the border as well. Monday, in fact, the head of the MFDA, a Canadian fund self-regulatory organization, resigned over allegations of market-timing violations in Canadian fund firms. Terrence Wright said he resigned as chairman of the Mutual Fund Dealers Association of Canada last Tuesday to "avoid any potential appearance of possible conflict." He is also an industry executive, holding the title of senior vice-president and general counsel at Investors Group Inc., one of four fund firms being investigated by the Ontario Securities Commission (OSC). Wright also served as chairman of the Investment Funds Institute of Canada, a trade group for the fund industry similar to the Investment Company Institute in the United States. That resignation was effective today. The IFIC's annual member meeting started this morning in Toronto and runs through the end of the week. The IFIC board will reportedly name Michel Fragasso, chief operating officer of Norbourg Gestion D'Actifs Inc., as chairman today. Wright's potential conflicts as head of the MFDA were heightened by the role played by the MFDA in the Canadian fund industry. The SRO was created six years ago by tge OSC to enforce sales rules and protect investors. Though it has not yet issued any enforcement actions against brokers, it was reportedly preparing to file its first action in November. The Ontario Securities Commission said a week ago that it is looking into market timing allegations at Investors Group, CI Fund Management Inc., AGF Funds Inc. and AIC Ltd., reports the Toronto Globe & Mail. Wright resigned the same day the probes were announced. The MFDA board appointed Robert Wright, deputy chairman of mining company Teck Cominco Ltd. and a former chairman of the OSC, as his successor, according to the paper. Printed from: MFWire.com/story.asp?s=8138 Copyright 2004, InvestmentWires, Inc. All Rights Reserved |